Article / 04 April 2012 at 12:22 GMT

The rain in Spain stays mainly in the plain...

Chief Economist & CIO / Saxo Bank
Denmark

SHORT NOTE on the Spanish yields which have now broken up - again....and the stock market is at concerning levels despite MASSIVE LTRO and LTRO-2 help - clearly this is no new trend and it could lead into a busy Easter for the European politicians who continue to play hide-and-seek with the market.

Todays Spanish auction result is here: That Spanish Auction (Source: FT Alphaville)

 

 Spanish 10 year Bonds and 5 year CDS

 Very bad day and it seems we have broken some “bad levels” on yield – Source: Credit Suisse

 Spanish 10yr technical - Source: Credit Suisse

 

---and likewise the stock market..

 Spanish stock market under pressure - Source: Credit Suisse

 

The LTRO money is running out, and standing on its own, Spain's capital markets are clearly having an issue.  We look for "bank recapitalisation" soon - after Easter as first sign of further weakness.

7y
goldfinger goldfinger
Dump euro's then!

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